PSTC Inks the Deal to Book ฿3bn from Selling TPN’s Shares to EGGO!
PSTC inked the deal to book 2,901.50 million baht from selling TPN's share to EGGO, aiming to use as a fund for new projects and working capital.
Power Solution Technologies Public Company Limited (PSTC) has announced that the Board of Directors Meeting of PSTC No.3/2019 on 18 July 2019, resolved to approve Biggas Technology Company Limited (BIGGAS), PSTC’s subsidiary by holding 51% of registered capital, to sell 7,739,998 shares of Thai Pipeline Network Company Limited (TPN), an indirect subsidiary, at par value Baht 100 per share or equivalent to 43% of registered capital to Electricity Generating Public Company Limited (EGCO).
The share sale and subscription agreement has been signed on 4 September 2019 and the shareholder agreement on 25 September 2019.
The totaling amount of 2,901.50 million baht from the selling of TPN will be paid to PSTC in two installments. The first installment of 1,661.50 million baht shall be paid on the share purchasing and subscription date of TPN, and the second installment of 1,240.00 million baht shall be paid with the condition, when TPN entered into a loan agreement for project construction.
The selling of TPN’s shares will receive the value of consideration of 2,901.50 million baht which will be investing in new projects of PSTC’s group and using as the working capital of PSTC. In addition, the company will have an expertise partner in energy to support the capability of the oil pipeline project.
In addition, EGCO is the first independent power producer in Thailand which operate in either the power business with Power Purchase Agreement (PPA) in both Thailand and the Asia Pacific region or other related power generation and distribution businesses.
Presently, EGCO’s power plants generate electricity using several fuel sources such as natural gas, coal, biomass, hydro, solar, wind, and geothermal which partly enhance the country’s power security.